“Taobao” in Chinese means “search for treasure” in Taobao can find everything from turkey to the TV. First half of 2009 trading volume of 80.9 billion yuan, which is double the same period last year, while turnover is higher than the same period in the Amazon.
Taobao wave enveloped the Yiwu City, the city is only 300 kilometers away from Shanghai. Here is the world’s largest small commodity wholesale market. Yiwu Ge Hongjun Business School is a student in this school 8800 students, one in five people in Taobao shop selling a variety of merchandise. According to school statistics, last year produced 2,500 students in shop million in revenue.
Ge Hongjun said, “After graduation, I will continue to Taobao’s trading, in Yiwu is very easy to find a job, but once I stepped into the business on track, my income will double or even triple the staff.”
Ge Hongjun started selling cosmetics, then extended to children’s toys, underwear and fashion accessories. Ge Hongjun monthly income will be about 3,000 yuan (440 U.S. dollars), but his business income of 10,000 yuan, compared to those months still immature in many of the veterans. Industrial and Commercial College, Yiwu’s most successful students each year to provide 10 million bonus. Ge Hongjun and his classmates filled with admiration for the winner of last year, this is called Yang Fukuoka (transliteration), pupils as young as 23 years old, in his final year of graduation to earn 7.5 million dollars.
In addition to advertising Taobao charge, the rest have adopted free way. Although Taobao did not disclose revenue, but revenue this year, Goldman Sachs estimated that Taobao will exceed 200 million U.S. dollars.
Taobao’s parent company is Hong Kong-listed Alibaba, Taobao was launched in 2003, when, eBay controlled 90% of China market. In two years time, Taobao’s market share to make eBay lowered to 30%, and forced the eBay policies have to take free of charge. By 2006, eBay’s China site was finally closed up shop. Taobao is currently China’s online retail market accounts for 82.8% of the market share.
Official statistics show that as consumers more confident shopping on the Internet, the first 9 months of this year, China’s online sales almost doubled, to 168.9 billion yuan. China has at least 338 million Internet users, is the world’s Internet users than any other country.
Taobao, said this year’s best-selling products are household items. This is the home items for the first time topped the best-selling products first place. Taobao believe that this occurs is of great significance, through online channels, to buy daily necessities has become increasingly accepted, the world’s major brands and small businesses are beginning to realize this.
Procter & Gamble earlier this year began Taobao 20% -30% discount price of sales of Rejoice shampoo, Olay skin cream, as well as Gillette shaving series. Japanese clothing retailer UNIQLO Taobao entered in April, the first 11 days attracted 43 million visitors, sales amounted to 4.1 million. Computer makers Dell and Lenovo have also opened up a sales channel for Taobao.